MASTER 

NEGATIVE 
NO.  95-8251 3 


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Author: 

Tennessee.  Laws, 
statutes,  etc. 

Title: 

Charter  of  the  State  Bank 
of  Tennessee 

Place: 

Nashville 

Date: 

1837 


MASTER   NEGATIVE  # 


COLUMBIA  UNIVERSITY  LIBRARIES 
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Tennessee.  Lav'fs,  statutes,  etc. 

Charter  of  the  State  bank  of  Tennessee.  Passed 
January  19th,  1838  tlj   Nashville,  C.  llye  and 
CO.  printers;  1837, 

27  p.   22«n. 

"Passed  January  25th,   1857":    p.   27. 


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DIRECTORS. 

William  Nichol,  of  Nashville^ 
Oliver  B.  Hays,  do. 

John  Shelby,  do. 

Henry  Ewing,  do. 

George  W.  Campbell,   do. 
Joseph  W.  Clay,  Davidson  county. 
Joseph  W.  Horton,  do. 

Nicholas  Perkins,  Williamson  county, 
Jonathan  Currin,  Rutherford  county. 
Samuel  R.  Anderson,  Sumner  county, 
Benjamin  T.  Motley,  Wilson  county. 
Theo.  F.  Bradford,  Bedford  county. 


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AN  ACT 

To  establish  a  State  Eank^  to  raise  a  fund  for  In- 
ternal Improvement,,  and  to  aid  in  the  establish' 
mentofa  system  dj  Education^ 

Section  I.  Be  it  enacted  by  the  General  Assembly  of 
the  State  of  Ttnnessee,  That  a  Bank  shall  be  and  is  hereby 
established,  in  the  name  and  for  the  benefit  of  the  State,  to 
be  known  under  the  name  and  style  of  "The  Bank  of  Ten- 
nessee," and  the  faith  and  credit  of  the  State  are  hereby 
pledged  for  the  support  of  the  said  Bank,  and  to  supply  any 
deficiency  in  the  funds  hereinafter  specially  pledged,  and  to 
give  indemnity  for  all  losses  arising  from  such  deficiency. 

Sec.  2.  Be  it  enacted.  That  the  capital  of  said  Bank 
shall  be  five  millions  of  dollars,  to  be  raised  and  constituted 
as  follows:  the  whole  of  the  Common  School  Fund,  whether 
the  same  is  vested  in  stock  in  the  present  banks  in  the  State, 
or  in  the  hands  of  the  Superintendent  of  Public  Instruction, 
or  in  the  hands  of  the  county  agents  or  other  persons,  ex- 
cept so  much  as  may  have  been  vested  in  any  works  of  inter- 
nal improvement,  as  well  as  the  proceeds  of  the  Ocoee  lands, 
shall  constitute  a  part  of  the  capital  of  the  Bank  of  Tennes- 
see: the  surplus  revenue  on  deposit  with  the  State,  together 
with  the  unexpended  interest  thereon,  shall  also  constitute  a 


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part  of  the  stock  of  said  Bank:  and  in  addition  to  these 
amounts  a  sum  shall  be  raised  in  specie,  or  funds  convertable 
into  specie  at  par  value,  on  the  faiih  of  the  State,  sufficient 
to  make  the  whole  capital  five  milHons  of  dollars;  provided, 
thrit  if  the  fourth  instalment  of  the  surplus  revenue,  appor- 
tioned under  the  act  of  Congress,  approved  23d  June,  1836, 
should  be  deposited  with  this  State,  the  amount  received 
shall  be  added  to  and  constitute  a  part  of  the  capital  of  said 
Bank,  and  be  an  addition  to  the  capital  stock  of  five  milhons 
of  dollars  above  specified;  Provided  further,  that  the  Stock 
owned  by  the  State,  in  the  Union  Bank,  shall  not  constitute 
any  portion  of  the  capital  of  the  Bank  of  Tennessee. 

Sec.  3.  Be  it  enacted,  That  the  money  belonging  to 
the  Common  School  Fund,  which  now  may  be  in  possession 
of  the  Superintendent  of  Public  Instruction,  or  which  may 
hereafter  come  into  his  possession,  shall  be  handed  over  to 
the  president  pnd  directors  of  the  Bank  of  Tennessee,  as 
capital  in  said  Bank,  and  said  president  and  directors,  or  a 
majority  of  them,  shall  be  authorized  and  required  for  and 
in  behalf  of  the  State,  and  with  a  pledge  of  the  public  faith 
and  ciedit,  to  issue  to  the  superintendent  aforesaid  state  slock 
or  certificates  of  debt,  for  such  sum  or  sums  as  may  be  from 
time  to  time  paid  over  by  the  said  superintendant  to  the  said 
president  and  directors;  and  the  Governor  of  the  State,  the 
Comptroller  of  the  Treasury,  and  the  Superintendent  of  Pub- 
lic Instruction,  shall  dispose  of  the  stock  in  any  and  all  the 
Banks  of  the  State,  belonging  to  the  common  school  fund, 
whenever  the  same  can  be  sold  at  par  for  specie,  or  funds 
convertible  into  specie,  at  par  value,  and  pay  over  the  pro- 
ceeds to  the  president  and  directors  of  the  Bank,  who  shall 
issue  certificates  of  stock  to  the  superintendent  of  public  in- 
struction as  aforesaid;  Provided,  that  any  dividends  on  the 
same,  which  shall  not  be  declared  at  the  time  of  the  sale, 
shall  not  be  sold  with  the  stock,  but  the  same  shall  be  re- 
ceived  by  the  superintendent  and   paid  over  to  the  president 


5 


and  directors  of  the  Bank,  and  shall  constitute  a  part  of  the 
contingent  fund,  to  meet  the  annual  or  semi-annual  liabilities 
of  the  Bank,  as  shall  also  the  interest  and  dividends  which 
may  hereafter  arise  on  any  portion  of  the  capital  of  the  school 
fund,  before  said  capital  is  paid  over  to  the  president  and  di- 
rectors of  said  Bank;  and  in  like  manner  the  superintendent 
of  public  instruction  shall  pay  over  the  proceeds  of  the  sale 
of  the  Ocoee  lands  as  they  are  received,  and  take  certificates 
of  stock;  Provided,  that  if  a  system  of  common  schools 
shall  be  adopted  and  put  into  operation,  by  the  present  Gen- 
eral Assembly,  the  funds  which  may  accrue  after  the  year 
1837,  for  the  benefit  of  common  schools,  from  the  bonuses 
of  the  present  Banks,  and  bonuses  and  dividends  arising  from 
other  incorporate  companies,  and  from  privileges,  fines,  pe- 
nalties and  taxes,  shall  constitute  part  of  the  annual  fund  for 
distribution  by  the  superintendent,  and  shall  not  be  subscrib- 
ed in  stock  in  the  State  Bank.  But  should  a  system  of 
common  schools  not  be  adopted  as  aforesaid,  then  said  funds 
to  be  vested  in  stock  in  said  Bank,  until  otherwise  directed 
by  the  General  Assembly. 

Sec.  4.  Be  it  enacted,  That  it  shall  be  the  duty  of  the 
comptroller  of  the  treasury  to  draw  from  the  Union  Bank, 
the  Planters  Bank,  and  the  Farmers  and  Merchants  Bank, 
the  amount  of  the  surplus  federal  revenue  now  on  deposite 
with  said  Banks,  in  two  yearly  instalments;  the  first  instal- 
ment to  be  drawn  on  the  1st  day  of  January,  1839,  each  in- 
stalment to  be  drawn  in  specie  or  funds  convertible  immedi- 
ately into  specie  at  par  value;  and  as  soon  as  each  instal- 
ment is  received,  he  shall  pay  over  the  same  to  the  presi- 
dent and  directors  of  the  State  Bank,  and  receive  certificates 
of  stock,  which  shall  be  kept  by  him  for  the  benefit  of  the 
Stale;  Provided,  that  if  the  said  Banks,  or  either  of  them, 
shall  fail  or  refuse  upon  demand  made  as  aforesaid,  to  pay 
over  the  surplus,  or  any  part  which  may  be  demanded,  at 
the  times  aforesaid,  then  the  comptroller  shall  direct  suits  to 


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he  instituted  by  the  Aitorney  General  of  the  State,  for  the 
amount  so  withheld,  together  with  the  ten  per  cent,  authoriz- 
ed by  their  charters;  and  until  said  instalments  are  demand- 
ed, the  present  banks  shall  hold  the  surplus  at  the  rate  of  six 
per  cent,  per  annum,  payable  half  yearly,  and  the  interest 
.so  accruing;  shall  constitute  part  of  the  sinking  fund  herein- 
after designated. 

Sec.  5.     Be  it  enacted,   That  it  shall  be  the  duty  of  the 
Governor  of  the   State,  on  behalf  of  the  State,  to  execute 
the  bonds  of  the  State,  for  two  and  a  half  millions  of  dollars, 
which  bonds  shall  be  signed  officially  by  the  Governor,  and 
countersigned  by  the  secretary  of  state,  with  the  seal  of  the 
State  affixed,  and  payable  thirty  years  after  date  to  the  presi- 
dent and  directors  of  the  Bank   of  Tennessee,  or  their  as- 
signs,  bearing  an  interest  not  exceeding  six  per  centum  per 
annum,  which  shall  be  payable  semi-annually,  at  the  office 
of  the  Treasurer  of  Tennessee,  or  at  such  other  place  within 
the  limits  of  the  United   States,  as  the  president  and  direc- 
tors may  select,  which  said  bonds  shall   be  delivered   to   the 
president  and  directors  of  said  Bank;  Provided,  the  Gover- 
nor shall  execute  said  bonds  of  any  amount,  not  less  than  one 
thousand  dollars  each,  and  payable  in  such  denomination  of 
money  as   the  president   and   directors  may  require;  which 
bonds  and  also  those  hereafter  diiected  to  be  issued,  to  pay 
for  stock  in  internal  improvement  companies,  shall  be  made 
payable  to,  and  be  sold  and  disposed  of  by,  the  president 
and  directors  of  said  Bank,  for  specie,  or  funds  convertible 
into  specie  without  loss,  and  shall  not  be  sold  at  a  discount. 
And  whenever  any  State  bonds  may  be  issued  for  the  benefit 
of  any  internal  improvement  company,  as  hereinafter  direct- 
ed, the  Governor  shall  deliver  them  to  the  president  and  di- 
rectors of  the  Bank,  and  the  full  amount  thereof  at  their 
nominal  value,   when  the  proceeds  are  received  by  the  Bank, 
shall  be  placed  to  the  credit  of  the  company,  for  whose  ben- 
efit such  bonds  may  have  issued,  and  any  premium  for  which 


5uch  bonds  may  be  sold,  shall  inure  to  the  benefit  of  the 
State;  Provided,  that  if  at  the  end  of  ninety  days  after  any 
bonds  may  have  been  delivered  to  the  Bank;  such  bonds 
have  not  been  sold  at  par  as  herein  provided  for,  then  the 
president  and  directors  of  the  Bank  shall,  on  application  of 
the  president  and  directors  of  the  internal  improvement  com- 
pany, for  which  such  bonds  were  issued,  ileliver  the.  same 
to  them  upon  their  receiving  them  in  payment  of  the  State's 
subscription  at  their  nominal  value;  or  the  said  president  and 
directors  of  the  Bank  may  at  their  election  pay  such  internal 
improvement  company  the  amount  of  such  bonds,  at  their 
nominal  vrlue,  and  retain  the  same  to  be  kept  or  disposed  of 
for  the  benefit  of  the  State. 

Sec  6.  Beit  enacted,  that  immediately  after  the  loca- 
tion of  the  principal  Bank  and  branches  the  Governor  of 
the  State,  shall  nominate  and  appoint  twelve  persons  to  act  as 
directers,  more  than  one  third  of  whom,  shall  in  no  case  be 
merchants;  and  which  nomination  and  appointment,  shall  be 
subject  to  confirmation,  or  rejection,  by  the  General  Assem- 
bly, and  the  twelve  persons  so  nominated  and  confirmed, 
shall  constitute  the  directors — one  of  whom  shall  be  the  presi- 
dent who  are  hereby  incorporated,  and  made  a  body  politic 
and  corporate,  by  the  name  and  style  of  "The  President  and 
Directors  of  the  Bank  of  Tennessee,"  and  shall  so  continue 
until  the  1st  day  of  January  1868,  and  by  that  name  shall  sue 
and  be  sued,  plead  and  be  impleaded,  and  they  are  hereby 
made  able  and  capable  in  law,  to  have,  receive,  purchase,  en- 
joy and  retain,  to  them  and  their  successors,  lands,  rents,  ten- 
ements, hereditaments,  goods,  chattels  and  effects,  of  what 
kind,  nature  or  quality  soever,  and  the  same  to  sell,  grant  de- 
mise, alien  or  dispose  of;  and  also  to  make,  have  and  use  a 
common  seal,  and  the  same  to  break,  alter  and  renew  at  their 
pleasure,  also  to  ordain  establish  and  put  in  execution  such 
by-laws,  ordinances,  and  regulations,  as  shall  seem  necessary 
and  convenient  for  the  government   of  said  corporation,  not 


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being  contrary  to  the  laws  and  constitution  of  the  State,  or  of 
the  United  States. 

Sec.     7.     Be  it  enacted,  That  the   president   and  direc- 
tors as  elected,  shall  continue  in  office  for  two  years,  and  un- 
til their  successors  are  nominated  and  confirmed  as  aforesaid. 
Sec.     S.     Be  it  enacted,  That  of  the    dividends   which 
shall  be  declared  by  the  Bank,  one   hundred    thousands  dol^ 
lars,  shall  be  annually  set  apart  for  common   schools,  and  the 
faith    of    the    State    is    hereby     pledged,     for    an    annual 
appropriation  of  said    amount  to    common  schools,  to  be  ap- 
pHed  as  the  general  assembly   may  direct.     Of  the  dividends 
of  the  Bank  remaining,  there   shall  be  annually    appropriated 
for  thirty  years,  and  no  longer,  or   not  so  long,  if  the  Bank 
should  not  contiue  so    long  in   operation,   eighteen  thousand 
dollars  to  county  academies,  to  be   applied  as  the  general  as* 
sembly  may  direct,  and  the  faith  of  the  State  is  hereby  pledg- 
ed for  the  annual  payment  of  the   said  sum;    Provided,  the 
trustees  of  the  respective  county    academies   in  the  several 
counties  of  this  State,  shall  relinquish  to  the  State  all  claims 
which  they  have  against  the  State  of  Tennessee,  for  the  debt 
due  to  those  institutions  from  citizens  residing  south  of  French 
Board  and  Holston,  and  west  of  Big  Pigeon  rivers,    and  all 
claims  they  may  have  to  lands  in  the  Ocoee  district,  as  well  as 
all  claims  which  they  have  against   said  citizens,  which  relin- 
quishments shall  be  filed  in  the  office  of  the  Secretary  of  state, 
and  the  proceeds  of  two  half  townships  of  land  in  the  Ocoee 
district,  reserved  by  the   act  disposing   of  said  lands  for  the 
use  of  colleges  and  academies,  shall  be  set  apart  for  and  given 
to  the  East  Tennessee  college  and  Nashville  University,  upon 
the  trustees  of  said   institutions  executing    such   relinquish- 
ments, as  are  herein  directed  for  the  academies;  and  provided 
further,  that  such  of  said    institutions  as    shall  rehnquish,  as 
herein  provided  for,  shall  be  entitled  to  their  rateable  propor- 
tion of  the  fund  herein  appropriated,  according  to    the  terms 
of  said  appropriation,  and  on  such  further   conditions    as  the 


1  - 


9 

present  General  Assembly  may    prescribe,  in  the    event  the 
federal  government  shall    hereafter  relinquish  to  the  State  of 
Tennessee,  the  vacant  lands  south  and    west  of  the  congres- 
sional reservation  line,  an   amount  of  forty  thousand  dollars, 
out  of  the  sale  of  those  lands,  shall  be  set  apart  as  a  perpetual 
fund  for  the  support  of  a  college  in  the  western  district ;^pro- 
vided,  that  the  general  government  in  the  act  of  relinquishment 
shall  grant  to  the  use  of  such  college  the^  appropriation  herein 
made.     The  balance  of  the  dividends  shall  be  set  apart  as  a 
sinking  fund,  to  be  applied  to  the  extmguishmentof  the  accru- 
ing interest  on  the  bonds  of  the  State,whether  the  same  have 
been  executed  under  any  former  act,  or  may  be  executed  un- 
der this  act. 

Sec.  9  Be  it  enacted,  That  the  following  powers,  rules, 
conditions,  limitations  and  restrictions,  shall  be  fundamental 
laws  of  said  Bafik,  viz: 

Article     1.     The  board  shall  select  on  of  their  number 
to  reside  over  their  deliberations,  who  shall  be  elected  by  a  ma- 
jority of  the  Directors  present,   of  whom  not  less   than  five, 
shall  constitute  a  quorum  to  do  business;  and  no  person  not  a 
citizen  of  this  State,    or  who  is  a  stockholder,  or  director  of 
any  other  Bank,  or  co-partner  of  any  such  director   in  trade 
and  merchandise,   shall  be   eligible  as   a  director;  Provided, 
should  It  so  happen  that  any  director  should  be  appointed,  who 
is  a  stockholder  or  director  in  any  other  Bank,  his  seat  shall 
be  considered  vacant  and  the  place  filled  by  the  other  directors 
as  in  other  cases  of  vacancy;  and  provided  further,  if  any  di- 
rector appointed  as  aforesaid  shall,  during  his  continuance  in 
office,  purchase  stock  or  become  a  director  in  any  other  Bank 
his  seat  shall  be  vacated,  which  shall  befiUed  by  the  directory 
as  in  other  cases. 

Art      2.     The  President  and  Directors  for  the  time  be- 
ing, shall  have  power  to  elect  and  remove  the  cashier,    and 
they  shall  also  have  power  to  appoint    such   officers,  clerks 
and  servants  under  them  as  shall  be  necessary  for  executing 


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the  business  of  the   said   corporation,    and  allow  them  such 
compensation  for  their  services,  as  may  be  reasonable. 

Art.  3  No  director  shall  be  entitled  to  any  emolument, 
but  the  directors  for  the  time  being,  shall  have  pov^^er  to  make 
such  compensation  to  the  president  of  the  Bank,  for  his  ex- 
traordinary attendance  at  the  Bank  and  superintending  its  con- 
cerns, as  shall  to  them  seem  reasonable.  No  discount  shall 
be  made  when  the  cashier  may  be  a  maker  or  endorser. 

Art.  4.  They  shall  receive  money  on  deposit,  and  pay 
away  the  same  to  order,  free  of  expense,  deal  in  bills  of  ex- 
change, and  buy  and  sell  any  of  the  State  stock  now  issued,  or 
that  may  hereafter  issue,  and  discount  notes  at  said  Bank  with 
two  or  more  good  endorsers  thereon,  at  a  rate  of  interest  not 
exceeding  six  per  cent  per  annum;  Provided^  that  this  article 
shall  not  be  construed  so  as  to  prevent  the  said  Bank  from  de- 
manding and  receiving  a  reasonable  premium  for  exchange,  in 
addition  to  the  interest,  upon  bills  or  notes  payable  at  a  point 
beyond  the  limits  of  this  State.  Provided  also  that  said  Bank 
or  either  of  said  branches,  never  shall  purchase  and  have 
running  to  maturity,  or  on  hand,  a  greater  amount  of  bills  of 
exchange  than  the  amount  of  notes  under  discount. 

Art.  5.  The  total  amount  of  debts  which  said  corpor- 
ation shall  at  any  time  owe,  whether  by  bond,  bill,  note  or 
contract  shall  not  exceed  twice  the  amount  of  the  capital  stock 
paid  in  at  the  time  over  and  above  the  moneys  on  actual  de- 
posit e  for  safe  keeping.  Nor  shall  the  entire  amount  of  the 
risk  or  investment  of  securities  in  what  form  soever  (save  and 
except  actual  cuirent  coin)  at  any  time  exceed  twice  the  a- 
mount  of  the  capital  stock  paid  in. 

Art.  6.  In  case  of  excess  the  directors  under  whose 
administration  it  shall  happen,  shall  be  liable  for  the  same  in 
their  private  capacities,  and  an  action  of  debt  may  in  such  case 
be  brought  against  them  or  any  of  them  or  their  heirs,  execu- 
tors or  administrators,  in  any  court  of  this  State,  having  juris- 
diction, by  any  creditor  or  creditors  of  the   said  corporation 


*  I 


11 

and  may  be  prosecuted  to  judgment  and  execution;  any  cou 
dition,  covenant   and  agreement,  to  the  contrary  notwithstand- 
ing.    But  this  shall  not  be  so  construed  to  exempt  said  Banks, 
or  the  lands,  tenements,  goods  or  chattels  of  the  same,  and  on 
their  insufficiency,  the  State  of  Tennessee   being   also  liable 
for,  and  being  chargeable  with  the  said  excess;  such  of  the  di- 
rectors who  may  have  been  absent  when  said  excess  was  con- 
tracted or  created,  shall  be  exonerated  from  individual  liability 
— or  who  may  have  dissented  from   the    resolution  or  act  by 
-  which  the  same  was  contracted  or  created,  may   respectively 
exonerate  themselves  from  being  individually  liable,  by  enter- 
ing, if  present,  their  dissent  on  the  Books  of  the  Bank,  at  the 
time  the  debt  may  be  so  contracted,  and  forthwith  give  notice 
of  the  same  to  the  comptroller  of  the  State. 

Art.  7.  In  case  of  vacancy,  occasioned  by  the  death, 
resignation  or  removal  out  of  the  State  or  otherwise,  of  any 
director,  a  majority  of  the  directors  shall  fill  such  vacancy, 
and  the  director  so  appointed  shall  hold  Ijis  office  during  the 
unexpired  term  of  the  director  so  vacating;  and  in  case  of 
sickness  or  necessary  absence  of  the  president,  the  board 
may  appoint  a  president  for  the  time. 

Art.  8.  The  directors  shall  keep  fair  and  regular  min- 
utes of  their  proceedings,  in  a  well  bound  book,  and  on  ques- 
tions where  two  directors  shall  request  it,  the  yeas  and  nays 
shall  be  ordered;  and  on  all  such  questions,  every  member 
present  shall  be  required  to  vote;  and  these  minutes  shall  at  all 
times  be  produced  on  the  demand  of  the  Legislature,  or  any 
committee  legally  authorised  to  require  the  same. 

Art.  9.  Every  president  and  cashier,  before  he  enters 
on  the  execution  of  his  duty,  shall  give  bond  with  two  or 
more  securities,  to  the  satisfaction  of  the  directors,  payable 
to  the  Governor  of  the  State,  in  a  sum  not  less  than  one  hun- 
dred thousand  dollars,  conditioned  for  the  faithful  performance 
of  his  duty;  and  the  tellers  and  clerks  shall  give  like  security 
in  a  sum  not  less  than  twenty  thousand  dollars,  which  bonds 
shall  be  filed  and  recorded  in  the  Secretary's  office. 


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Art.  10.  The  president,  directors  and  cashier,  and  all 
other  officers  of  the  principal  Bank  and  branches,  shall  take 
and  subscribe  the  following  oath,  on  entering  on  the  duties  of 
their  respective  offices:  "I,  A.  B.  do  solemnly  swear  or  af- 
firm, that  I  will  faithfully  discharge  the  trust  reposed    in    me 

as  — of  the  Bank  of  Tennessee,  and  that  I    will  not 

wilfully  or  knowingly  violate  any  direction  or  provision  of  the 
charter  thereof.  So  help  me  God." 

Art.  11»  All  bills,  bonds  and  notes  of  the  corporation, 
shall  be  signed  by  the  president  and  countersigned  by  the 
cashier  thereof,  and  the  fund  of  the  Bank  shall  in  no  wise  be 
held  responsible  therefor,  unless  the  same  shall  be  executed  as 
aforesaid. 

Art.  12.  The  bills  or  notes  which  it  shall  be  lawful  for 
said  corporation  to  issue  and  circulate,  shall  not  be  for  a  less 
denomination  than  five  dollars,  and  after  the  first  day  of  Jan- 
uary 1S41,  not  less  than  ten  dollars. 

Art.  13.  The  board  of  directors  shall  be  capable  of 
exercising  such  other  powers  and  authorities  as  may  be  neces- 
sary for  the  well  governing  and  ordering  the  afl^airs  of  the  said 
corporation,  and  of  promoting  its  interests  and  credit. 

Sec.  10.  Be  it  enacted^  That  the  bills  obligatory  or  of 
credit,  under  the  seal  of  said  corporation,  which  shall  be  made 
to  any  person  or  persons,  shall  be  assignable  by  endorsement 
thereupon  under  the  hand  or  hands  of  such  person  or  persons, 
and  of  his,  her  or  their  assignee  or  assignees,  and  so  as  abso- 
lutely to  transfer  and  vest  the  property  thereof  in  each  and 
every  assignee  or  assignees  successively,  and  to  enable  such 
assignee  or  assignees,  to  bring  and  maintain  an  action  thereup- 
on in  his,  her  or  their  name  or  names  and  bills  or  notes  which 
may  be  assigned  by  order  of  the  said  corporation,  signed  by 
the  president  and  countersigned  by  the  cashier  thereof,  prom- 
ising the  payment  of  money  to  any  person  or  persons,  his, 
her  or  their  order,  or  to  bearer,  though  not  under  the  seal  of 
the  said  corporation,  shall  be  binding  and  obligatory  upon  the 


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13 

.;nme  iu  like  manner  and  with  the  like  force  and  effect  as  upon 
any  private  person  or  persons,  if  issued  by  him,  her  or  them, 
in  his  her  or  their  privateer  naturalcapaci'y  or  capacities,  and 
shall  be  assignable  and  negotiable  in  like  manner  as  if  they  were 
so  issued  by  such  private  person  or  person;  that  is  to  say,lthose 
which  are  or  shall  be  payable  to  any  person  or  persons,  his, 
her  or  their  order,  shall  be  assignable  by  endorsement  m  like 
manner  as  foreign  bills  of  exchange  now  are,  and  those  which 
are  or  shall  be  payable  to  bearer,  shall  be  negotiable  and  as- 
signable by  delivery  only. 

Skc    11    Be  it  enacted,  That  it  shall  be  the  duty  of  the 
president  and  directors  of  the  principal  Bank  and  branches,  to 
urnish  to  the  General  Assembly,  within  the  first  week  of  every 
regular  session,  statements  of  the  amount  of  the  capital  stock 
of  said  corporation,  and  of  the  debts  due  the  same,  of  the  mo- 
nies deposited  therein,  of  the  notes  in  circulation   and  of  the 
cash  on  hand,  together  with  all  other  property   of  said  Bank, 
both  real  and  personal   and  the  General  Assembly  shall  have 
the  right  to  inspect  all  such  accounts  in  the  Bank  as  relates  to 
the  transactions  of  said   principal   Bank   and  branches,  and 
shall,  whenever  it  may  be  deemed  necessary,  appoint  a  joint 
committee  of  both  houses  of  the  General   Assembly  for  that 
purpose,  with  full  power  to  send  for  persons  and  papers;  and 
ft  shall  be  the  duty  of  the  Comptroller  to  inspect  all  accounts 
in  the  books  of  the  principal  Bank  and   branches,  as   often  as 
he  may  please;  and  it  shall  and  is  hereby  declared  to  be  his 
duty,  faithfully  to  report  all  and  every  violation  of  the  funda- 
mental rules  of  this  corporation  to  the  Legislature. 

Sec  12.  Be  it  enacted,  That  the  bills  or  notes  of  the 
said  corporation,  originally  made  payable,  or  which  shall  have 
become  payable  on  demand,  in  gold  or  silver  coin,  sha  be 
receivable  at  the  treasury  of  this  State,  and  by  aU  tax  collec- 
tors and  other  public  officers,  in  all  payments  for  taxes  or 
other  monies  due  to  the  State. 

Sec.    13.     Be  it  enacted.  That  a  majority  of  the  raem- 


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beis  present,  at  any  regular  meeting  of  the  directors  of  llm 
principal  Bank  and  branches,  may  suspend  any  director  with 
a  view  to  his  expulsion,  and  any  member  may  be  expelled 
at  a  meeting  of  the  board  of  directors  specially  convened  bj^ 
the  president  for  that  purpose,  as  soon  after  such  suspension 
takes  place  as  practicable;  but  such  expulsion  shall  not 
be  made  by  a  majority  of  less  than  two  thirds  of  the  whole 
number  of  directors. 

Sec.   14.     Be  it  enacted,  That  it  shall  be  the  duty  of  the 
comptroller  to  make  a  biennial  report  to  the  Legislature  on 
the  subject  of  the  principal  Bank  and  branches,  and  if  in  his 
opinion  the  transactions  of  the  principal  Bank  and  branches, 
or  any  particular  circumstance  relating  thereto,  shall  require 
It,  he  shall  apply  to  the  General  Assembly  for  a  select  com- 
mittee,  who  shall  take  into  consideration  any  matters  relating 
to  the  principal  Bank  and  branches,  submitted  to  them  by  the 
comptroller,  and  report  thereon,  at  the  discretion  of  the  Le- 
gislature; and  the  comptroller  shall  be  furnished  by  the  prin- 
cipal Bank  and  branches,  with  a  general  statement  of  their 
condition  once  in  every  month. 

Sec.  8.  Be  it  enacted,  That  it  shall  be  the  duty  of  the 
president  and  directors  of  the  Bank,  to  publish  quarterly  in 
some  newspaper,  the  state  and  condition  of  the  Bank  and  its 
branches. 

Sec    16.     Be  it  enacted,  That  if  any  president,  director, 
or  cashier,  or  other  officers  of  the  said  Bank,  or  any  of  it^ 
branches,  shall  embezzle  or  fraudulently  convert  to  his  or  to 
their  own  use,  any  sum  of  money,  bank  note,  bill  of  exchange, 
check,  bond,   or   other  security,  placed  under  his  care  Ld 
management    the  person  so  offending,  his   aiders,  abettors, 
and  counsellors,  upon  conviction  thereof,  shall  be  judged 
guilty  of  felony,  and  be  semenced   to   imprisonment  in  the 
btate  Penitentiary,  for  a  term  not  less  than  three  years,  nor 
more  than  twenty-one  years,  the  term  to  be  fixed  at  the  dis- 
cretion  of  the  jury   trying   said  offence,  and  shall  forever 


15 


thereafter  be  disqualified  from  holding  any  office  of  profit  or 
trust  in  this  State,  and  shall  moreover  be  liable  for  the  sum 

embezzled.  , 

Sec     17.     Be  it  enacted.  That  the  sums  discounted  on 
notes    with  two  or  more  sufficient  securities,  as  provided  for 
by  this  act,  shall  be  apportioned,  as  far  as  practicable,  among 
the  several  counties  in  this  State,  annually,  in  proportion  to 
the  qualified  voters,  and  the  preside..!  and   cashier  of  the 
Bank  or  branch,  shall  give  notice  in  some  public  paper  print- 
ed in  the  county  in  which  the  Bank  or  branch  may  be  located, 
stating  the  amount  that  each  county  may  be  entitled  to  bor- 
row, within  ten  days  after  the  right  to  borrow  in  manner  afore- 
said may  arise;  and  should  the  sum,  or  any  part  thereof,   to 
which  any  county  should  be  thus  entitled,  be  not  applied  for 
within  fifteen  days  after  such  notice,  by  the  inhabitants  there- 
of   by  presenting  bills  or  notes  for  discount,  with  good  en- 
dorsers, then  it  maybe  discounted  as  aforesaid,  to  any  person 
or  persons  applying  for  the  same.     The  principal  Bank  and 
three  branches  shall  be  located   in  Middle  Tennessee,  two 
branches  of  the  said  Bank  in  the  Western  District,  and  two 
branches  in  East  Tennessee. 

Sec  18  Be  it  enacted.  That  the  lands,  tenements,  and 
hereditaments  which  it  may  be  lawful  for  said  corporation  to 
hold,  shall  be  only  such  as  shall  be  requisite  for  its  immediate 
accommodation  for  the  transaction  of  its  business,  and  such 
as  have  been  bona  fide  mortgaged  to  it  by  way  of  security  tor, 
or  conveyed  to  it  in  satisfaction  of  debts  previously  contract- 
ed in  the  course  of  ordinary  banking  business,  or  purchased 
at  sales  upon  judgments  or  decrees  rendered  in  favor  of  said 

^^Ec  19.  Be  it  enacted.  That  it  shall  be  the  duty  of  the 
Governor,  as  soon  as  the  directors  are  appointed  of  the  prin- 
cipal Bank  and  branches,  to  convene  the  several  boards  of 
the  same  by  advertisement  in  some   newspaper,  givmg  ten 


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days  notice  thereof,  at  tlie  place  the  Bank  or  branch  may  be 
located,  for  the  purpose  of  carrying  this  act  into  effect 

Sec.  20.  Be  it  enacted.  That  whenever  the  president 
and  directors  of  any  co.npany  incorporated  for  the  purposes 
of  .nternaJ  .mprovement,  shall  negotiate  any  bonds  execut- 
ed under  the  provisions  of  this  act,  it  shall  be  their  duty  to 
notify  the  president  and  directors  of  the  Bank,  of  the  place 

Vu   u  '^t'"'"""''  °"  '"''^  ^°'"^'  ''  ^'iP"la'ed  to  be  paid, 
wh,ch  sWl  be   within  the  limits  of  the  United   States,  and 
the  president  and  directors  of  the  Bank  shall  provide  for  the 
payment  of  the  interest  aforesaid,  out  of  the  dividends  of  the 
Bank;  Provided,  that  if  there  shall  be  a  surplus  of  the  divi- 
dends, after  setting  apart  the  amount   appropriated   to  com- 
mon schools  and  academies,  and  after  paying  the  interest  on 
the  bonds  of  the  State,  the  same  shall  be  held  by  the  Bank  as 
a  contingent  fund,  to  be  appropriated  at  any  time  when  there 
may  occur  a  deficiency  in  the  dividends  for  the  purposes 
aforesaid;  M  provided  also,  that  if  at  any  time  there  shall 
be  a  deficiency  m  the  dividends  to  liquidate  the  accruing  in- 

msuflicient  for  such  purpose,  such  deficiency  shall  be  made 
up  out  of  any  uninvested  dividends  that  may  have  been  de- 
c  ared  on  the  stock  owned  by  the  State,  in  the  several  works 
of  internal  improvement;  and  if  there  should  still  be  a  defici- 
ency   the  same  shall  be  made  up  by  the  individual  stockhold- 
ers of  the  several  roads  in  which  the  State  has  subscribed  for 
stock  ,n  proportion  to  the  amount  for  which  the  State  may 
have  issued  her  bonds  in  each,  the  amount  so  paid  by  the 
several  companies,  to  be  reimbursed  out  of  the  first  dividends 
declared  m  favor  of  the   State  on  her  stock  in  said  compa- 
nies.    In  the  event  the  dividends  of  the  Bank  and  the  pro- 
fits arising  from  the  stock  of  the  State  in   internal  improve- 
ments shall  prove  insufficient  to  liquidate  the   interest  on  the 

ment,  .t  shall  be  the  duty  of  the  Governor  to  notify  the  pre- 


17 


sident  and  directors  of  such  companies  in  which  the  state  has 
subscribed  for  stock,  at  leas!  three  months  before  the  interest 
will  become  payable  on  the  state's  bonds  of  the  probable  de- 
ficit, and  of  the  amount  which  will  be  required  of  each  company 
to  be  paid  in  order  to  meet  the  interest  on  the  bonds  of  the 
state,  and  upon  receiving  such  notice  from  the  Governor,  it 
shall  be  the  duty  of  the  president  and  directors  of  each  and 
every  company  thus  notified,  forthwith  to  make  a  call  upon 
the  individual  stockholders,  for  an  amount  equal  to  the  sum 
claimed  by  the  Governor,  in  his  notice  to  said  companies, 
which  sum  or  sums  of  money  shall  be  paid  at  the  time,  place, 
and  manner  required  by  the  Governor,  and  upon  failure  there- 
of, by  any  of  said  companies,  to  meet  the  instalment  thus 
required,  it  shall  be  deemed  and  taken  to  be  a  forfeiture  of 
the  interest  of  the  individual  stockholder  or  stockholders  thus 
failing  to  pay  the  instalment  called  for  by  the  Governor;  and 
Provided  further,  that  no  state  bonds  shall  be  issued  for  the 
payment  of  state  stock,  in  works  of  internal  improvement, 
under  the  provisio<is  of  this  act,  until  the  Bank  hereby  estab- 
lished shall  go  into  operation. 

Sec.  21.  Be  it  enacted,  That  the  State  of  Tennessee 
shall  become  a  subscriber  for  one  half  of  the  capital  stock  in 
all  rail  roads,  McAdamized  turnpikes,  graded  turnpikes  and 
sanded  turnpikes,  for  which  acts  of  incorporation  have  here- 
tofore been  granted,  or  for  which  acts  of  incorporation  may 
be  hereafter  granted;  Provided,  that  the  subscription  on  the 
part  of  the  state  shall  not  exceed  an  average  of  three  thou- 
sand dollars  per  mile  in  any  company  for  McAdamized  turn- 
pikes, nor  shall  it  exceed  one  thousand  dollars  per  mile  on 
graded  turnpikes,  nor  seven  hundred  and  fifty  dollais'per  milein 
sanded  turnpikes;  Provided  also,  the  subscription  by  the  state 
to  the  Charleston  and  Cincinnati  rail  road,  and  the  Hiwassee 
rail  road,  shall  not  exceed  one  million  three  hundred  thou- 
sand dollars,  to  be  equally  divided  between  them,  and  to  be 
expended  within  the  State  of  Tennessee. 

3 


Ml' 


V 


T-  i 


18 


Sec.  22.  Be  it  enacted^  That  whenever  the  Governor 
shall  be  notified  in  writing  by  the  president  and  directors  of 
any  company,  for  the  construction  of  rail  roads,  McAdam- 
ized  turnpikes,  graded  turnpikes,  or  sanded  turnpikes,  that 
one  half  of  the  capital  stock  of  said  company  has  been  sub- 
scribed for,  thereupon  the  Governor  shall  appoint  a  number 
of  directors,  not  to  be  stockholders,  equal  to  the  number 
elected  by  individual  stockholders,  and  if  in  the  opinion  of 
two  thirds  of  said  entire  board,  the  payment  is  well  secured 
by  the  individual  stockholders,  or  that  the  individual  stock- 
holders are  good  and  solvent  persons,  and  fully  able  to  pay 
the  amount  of  stock  subscribed  for  by  each  of  them,  and  that 
they  have  paid  ten  per  cent,  upon  the  stock,  the  Governor  of 
the  state  is  hereby  authorized  and  empowered,  and  required 
to  subscribe  on  behalf  of  the  state  for  the  amount  provided 
for  in  the  foregoing  section;  and  from  the  date  of  the  sub- 
scription by  the  Governor,  the  state  shall  have  a  lien  upon 
the  property  of  each  individual  stockholder,  to  the  amount  of 
the  stock  owned  by  each,  and  upon  the  failure  of  any  stock- 
holder to  pay  any  subsequent  instalment  after  the  first,  such 
failure  shall  not  operate  as  a  forfeiture  of  the  stock,  unless 
the  president  and  directors  shall  so  agree,  but  payment  shall 
be  enforced  by  the  president  and  directors,  and  no  transfer 
or  assignment  of  stock  shall  defeat  the  said  lien;  provided, 
that  said  lien  shall  cease  after  the  individual  stockholders  shall 
have  paid  in  one  half  their  stock. 

Sec.  23.  Be  it  enacted,  That  whenever  the  individual 
stockholders  of  any  of  the  said  companies  in  which  the  State 
has  become  a  stockholder  under  this  act,  shall  have  paid  five 
per  cent,  in  addition  to  the  ten  per  cent,  heretofore  provided  to 
be  paid,  making  fifteen  per  cent,  upon  the  amount  of  their  stock, 
and  the  president  and  directors  of  such  company  shall  notify  the 
Governor  of  that  fact,  he  is  hereby  authorized  and  required 
to  issue  the  bonds  of  the  State,  signed  officially  by  him  and 
countersigned  by  the  Secretary  of  State,  with  the  seal  of  the 


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19 

Stale,  payable  thirty  years  after  execution,  and  bearing  an  in- 
terest of  five  per  cent,  per  annum,  payable  semi-annually  at  the 
office  of  the  Treasurer  of  Tennessee,  or  such  other  places 
as  the  president  and  directors  negotiating  the  same  may  de- 
signate, for  an  amount  equal  to  fifteen  per  cent,  of  the  stock 
subscribed  by  the  State  in  said  company,  and  deliver  said 
bonds  to  the  president  and  directors  of  said  company,  in 
full  payment  of  fifteen  per  cent  of  the  State  subscription. 
And  upon  the  further  payment  of  fifteen  per  cent,  upon  the 
stock  of  individual  stockholders  in  any  of  said  companies,  the 
Governor  shall  issue  the  bonds  of  the  State  for  fifteen  per  cent, 
of  more  of  the  stock  of  the  State,  in  the  same  manner  and  un- 
der the  same  rules,  regulations  and  restrictions  as  herein  before 
provided;  and  upon  the  further  payment  of  five  per  cent,  or 
more  upon  the  stock  of  individual  stockholders,  the  Governor 
is  authorized  and  required  to  issue  the  bonds  of  the  State  for 
the  like  proportion  of  the  stock  due  by  the  State,  under  the 
same  rules,  regulations  and  restrictions  as  before .  And  in  like 
manner  the  amounts  paid  by  individuals  and  the  State,  at  the 
several  subsequent  calls  shall  be  equal,  until  the  whole  amount 
required  to  complete  the  work  is  paid  in;  and  from  time  to 
time  he  shall  take  the  receipts  of  the  president  and  directors 
for  the  several  sums  as  paid.  So  soon  as  the  president  and  di- 
rectors of  the  Louisville,  Cincinnatti  and  Charleston  Rail  Road 
Company,  shall  certify  to  the  Governor  of  the  State,  that  the 
stockholders  of  said  company  have  paid  in  five  per  cent,  of 
their  stock,  the  Governor  of  the  State  shall  subscribe  on  be- 
half of  the  State,  six  hundred  and  fifty  thousand  dollars  in 
stock  in  said  company,  and  shall  issue  bonds  of  the  State  to 
said  company  for  five  per  cent,  on  the  State  stock  so  subscrib- 
ed, subject  nevertheless  to  theconditions  herein  after  provided. 
And  as  soon  as  the  president  and  directors  of  the  Louisville, 
Cincinnatti  and  Charleston  Rail  Road  Company,  or  a  board 
of  directors  appointed  by  said  company,  to  construct  that 
part  of  the  road  lying  within  the  limits  of  Tennessee,  shall 


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certify  to  the  Governor  that  a   sum  has   been  paid  in   for  the 
constrHction  of  said  road  within  the  hmits>  of  Tennessee,  by 
individual  stockholders  upon  their  stock,  equal  in  amount  to 
fifteen  per  cent,  upon  the  amount  to  be  subscribed  by  the  State, 
the  Governor  shall  execute  the    bonds  of  the    State  to  said 
company  for  the  amount  of  fifteen  per  cent,  of  (he  six  hundred 
and   fifty    thousand  dollars  of  stock  to  be  subscribed  by  the 
State.     And  whenever  individual   stockholders   in  said  road 
shall  have  paid  in  a  further  sum   upon  their  stock,  equal  in  a- 
mount  to  fifteen  per   cent,  upon  the  stock  subscribed  by  the 
State,  the  Governor  shall  issue  the  bonds  of  the  State  for  fif- 
teen per  cent,  of  the  remaining  stock  of  the  State:  and  upon 
the  further  payment  by  individual  stockholders  of  an  amount 
equal  to  five  per  cent. or  more  on  stock  subscribed  by  the  State, 
the  Governor  shall  issue  bonds  for  five  per  cent,  or  more  of  the 
State  stock,  and  so  on  in  like  proportion  until  the  whole  a* 
mount  is  issued,  all  of  which  is  to  be  laid  out  within  the  lim- 
its of  the  State.     And  whenever  the  president  and  directors 
of  the  Hiwassee  Rail  Road  Company  shall  notify  the  Gover- 
nor in  writing,  of  the  amount  of  stock  subscribed  by  individ- 
uals in  said  company,  the   Governor  shall  subscribe  for  an 
equal  amount  of  State  stock;  Providvd,  such  amount  does  not 
exceed  six  hundred  and  fifty  thousand  dollars,  subject  to  the 
same  rules  as  to  issuing  the  bonds  of  the  State  as  is  pointed 
out  by  this  act  for  the  government  of  other  rail  roads  and  Mc- 
Adamized    turnpike   companies:     Provided,  that  if  the  six 
hundred  and  fifty  thousand  dollars  should  not  be  subscribed  by 
individuals  for  stock  in  said  company,  and  a  certificate  of  that 
fact  made  out  to  the   Governor  on  or  before  the  first   day  of 
October  next,  agreeably  to  the  provisions  of  this  act,  so  as  to 
authorize  the  Governor  to  subscribe  for  the  full  amount  of  the 
six  hundred  and  fifty  thousand  dollars  in  said  company,  the 
Governor  shall  subscribe  for  an  equal  amount  of  stock  in  said 
road,  as  is  or  shall  be  subscribed  by  individuals,  and  certified 
as  is  directed  by  the  21st  and  22nd  sections  of  this  act,  and 


21 

the  remainder  of  the    six  hundred  and  fifty  thousand  dollars 
shall  be  subscribed  by  the   Governor  to  any    McAdamized, 
sanded  or  graded  turnpike    road  company  in  East  Tennessee 
that  shall  bring  themselves   within  the  provisions  of  this  act. 
And  the  Governor  is  hereby  authorized  from  time  to  time,  to 
constitute   and   appoint  proxies   to  vote  for    directors  in  said 
Louisville,  Cincinnati  and  Charleston  Rail  Road  Company, 
and  such  proxies  shall  give  other  votes  he  may  be  authorized  to 
do  by  virtue  of  such  appointment  agreeable  to  the  provisions  of 
said  charter.  Jlnd  provided  Jurther,  that  if  the  Louisville,  Cin- 
cinnati and  Charleston  Rail  Road  Company,  or  the  Hiwassee 
Rail  Road  Company,    or  either  of  them,  shall  fail  to  obtain 
the  subscription  on  the  part  of  the  State  on  or  before  the  first 
day  of  January,    1839,    then  and  in  that  case,  it  shall  be  the 
duty  of  the  Governor  to  subscribe  for  stock  in  such  turnpike 
roads  in  East   Tennessee  as  may  bring  themselves  within  the 
general  provisions  of  this  act. 

Sec.  24.  Be  it  enacted ^  That  the  State  of  Tennessee 
shall  have  a  lien  on  the  entire  works  of  said  companies  respec- 
tively, for  the  amount  so  paid  in  by  the  State.  And  in  all,  the 
profits,  rents  and  tolls  of  said  companies  shall  inure  to  the 
benefit  of  the  State,  until  individual  slockholders  shall  have 
paid  in  their  entire  stock  in  said  companies  respectively;  Pro- 
vided^ the  right  and  lien  on  the  part  of  the  State  to  the  entire 
profits,  rents  and  tolls  of  the  said  several  works,  shall  not  inure 
until  twelve  months  after  the  execution  of  the  bonds  of  the 
State,  for  the  last  instalment  on  her  stock  as  aforesaid,  and 
then  only  to  the  extent  of  that  portion  of  the  individual  stock- 
holders who  have  not  paid  up  the  entire  amount  of  their  stock, 
and  to  remain  no  longer  than  said  defaulting  stockholders  fail 
to  pay  the  same. 

Sec.25.   Be  it  enacted,  That  the  stock  to  be  taken  by  the 
State  in  the  several  improvements,  shall  not  exceed  four  mil- , 
lions  of  dollars,  to  wit:  one  milHon  four  hundred  thousand  dol- 
lars in  East  Tennessee,  one  miUion  six  hundred  thousand  dol- 


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lars  in  Middle  Tennessee,  and  one  million  of  dollars  in  the 
Western  District;  Provided,  that  one  hundred  thousand  dol- 
lars shall  be  raised  upon  the  bonds  of  the  State,  and  be  ex- 
pended as  a  portion  of  the  fund  allotted  to  East  Tennessee 
upon  the  rivers  in  East  Tennessee,  as  the  General  Assembly 
may  hereafter  direct;  and  provided  also,  that  one  hundred 
thousand  dollars  of  the  fund  allotted  to  the  Western  District 
of  Tennessee,  be  expended  upon  the  rivers  in  that  part  of  the 
State,  as  the  General  Assembly  may  hereafter  direct;  and 
provided,  that  one  hundred  thousand  dollars  of  the  fund  al- 
lotted to  Middle  Tennessee  shall  be  appropriated  to  the  rivers 
of  Middle  Tennessee. 

Sec.  26.  Beit  enacted,  That  the  profit  arising  upon  the 
stock  ov^med  by  the  State  in  the  several  works  of  internal  im- 
provement, shall  constitute  a  fund  to  be  applied  to  the  re- 
demption of  the  bonds  of  the  State  executed  and  to  be  execu- 
ted for  raising  the  Bank  capital  herein  provided  for,  and  the 
internal  improvement  bonds  of  the  State. 

JOHN  COCKE, 
Speaker  of  the  House  of  Representatives, 
TERRY  H.  CAHAL, 

_         ,  _  Speaker  of  the  Senate, 

Passed  January  19th,  1838, 


SUPPLEMENTAL    BILL. 


Section  1.  Be  it  enacted  by  the  General  Assembly  of 
the  State  of  Tennessee,  That  the  president  and  directors  of 
the  principal  Bank  shall  locate  the  branches  and  appoint 
twelve  directors  for  each  branch  of  the  Bank  of  Tennessee, 
of  vs^honi  one  shall  be  from  each  of  the  counties  adjoining  the 
one  in  which  the  branch  is  located;  Provided,  that  it  shall  not 
reduce  the  number  in  the  county  in  which  the  branch  is  located 
to  less  than  seven,  who  shall  remain  in  office  for  twelve 
months,  and  until  their  successors  are  appointed  and  qualified 
in  the  way,  possess  the  qualifications,  be  subject  to  the  dis- 
qualifications and  liabilities,  and  shall  have  the  powers  and  per- 
form the  duties  so  far  as  the  same  apply,  as  the  directors  of 
the  principal  Bank.  And  the  board  of  directors  of  the  branch- 
es respectively  shall  be  under  the  same  rules  and  regulations  as 
the  board  of  directors  of  the  principal  Bank;  but  the  board 
of  directors  of  the  branches  may  make  necessary  by-laws  for 
their  government,  not  inconsistent  with  this  act  and  the  act  to 
which  this  a  supplement,  and  not  inconsistent  with  the  con- 
trolling power  given  to  the  principal  bank  over  said  branches; 
vacancies  in  the  board  of  directors  at  the  branches  shall  be 
filled  by  the  boards  at  the  branches  respectively;  the  officers 
and  servants  of  the  branches  shall  be  appointed  by  the  board 
of  directors  at  the  branches;  officers  and  servants  of  the 
branches  shall  be  qualified,  and  be  subject  to  the  same  penal- 
ties as  officers  and  servants  of  the  principal  bank. 


21 


Sec.  2.     Be  it  enacted,   That  when  the  five  millions  of  the 
capital  stock  shall  be  paid  in,  (he  president  and    directors  of 
the  principal  Bank  shall  pay  over  to  the  several   branches  of 
said  Bank,  at  least  four  hundred  thousand  dollars  as  the  capi- 
tal respectively  of  said  branches;  Provided,  it  shall  be  the  duty 
the  president  and  directors  of  the  principal  Bank,  to  employ 
three  millions  two  hundred   and  fifty    thousand  dollars  of  the 
capital  stock  at  the  different  branches,  when  the  whole  is  paid 
in,  and  if  upon  the  report  of  the   president   and  directors   of 
any  branch  or  branches,  authorised  to  be  located  by  this  act,  or 
the  act  to  which  this  is  a  supplement,  the  sum  of  four  hundred 
thousand  dollars  cannot  be  employed  at  any  of  such  branches, 
so  as  to  yield,   after  defraying  all  expenses,   a  nett  profit  of 
eight  per  cent,  it  shall  in  such  case,  be  the  duty  of  the  presi- 
dent and  directors  of  the  principal  bank  to  withdraw  so  much 
thereof  as  cannot  be  profitably  used,  and  to  transfer  the  same 
to  such  other  branch  or  branches  where  it   can   be  used    best 
for  the  intest  of  the  bank  and  the  people,  subject  to  be  with- 
drawn and  employed  and  transferred    to  any  other  branch  or 
branches  where  the  same  can  be  used  most  profitably;  Provi- 
ded also,  the  president  and  directors  of  the  principal  bank  shall 
not  employ  more  than  one  milhon  seven  hundred  thousand  and 
fifty  thousand  dollars  at  the  principal  bank,  unless  it  shall  ap- 
pear from  the  reports  of  the  branches  that  the  amount  beyond 
the  said  sum  cannot  be  employed  at  a   nett   profit  of  at  least 
eight  per  cent,  at  any  or  all  of  the  branches;    and    Provided 
that  the  president  and  directors  shall  not  reduce  the  amount  of 
capital  of  either  of  the  branches  to  a  less  sum  than  three  hun- 
dred thousand  dollars.     The  first  distribution    of  capital  shall 
be  made  to  the  branches  when  the  principal  Bank  shall  go  into 
operation,  and  of  the  first  distribution  of  capital  derived  from 
the  sale  of  the  state  bonds,  at  least  two  hundred  thousand  dol- 
lars shall  be  paid  over  to  each  branch;  and  not  more  than  sev- 
en hundred  and  fifty  thousand  dollars  shall   be  retained  by  the 
principal  bank  for  banking  purposes. 


rvx^v: 


25 


Sec.  3.  Be  it  enacted,  That  each  of  said  branches  shall 
make  semi-annual  dividends  of  the  nett  profits,  which  shall 
forthwith  be  paid  to  the  principal  Bank,  who  shall  provide  for 
the  payment  of  the  interest  on  the  state  bonds,  and  the  annual 
dividends  for  the  support  of  academies  and  common  schools, 
as  provided  for  by  the  act  to  which  this  is  a  supplement. 

Sec  4.  Be  it  enacted,  That  wbenever  in  the  opinion  of 
the  president  and  directors  of  the  principal  Bank,  a  change  of 
policy  in  the  management  of  any  particular  branch  or  of  the 
whole  is  required  for  the  general  benefit  of  the  institution,  they 
shall  have  power  to  call  a  convention  of  delegates  from  all 
the  branches,  to  be  composed  of  one  member  from  each 
board  of  the  branches,  and  the  president  and  directors  of  the 
principal  Bank,  to  consult  and  advise  in  relation  to  the  same, 
and  whatever  may  be  determined  upon  by  a  majority  of  said 
convention,  the  same  shall  be  the  governing  poHcy  of  the  in- 
stitution. 

Sec.  5.  Be  it  enacted,  That  within  thirty  days  after  the 
apointment  of  the  directors  of  the  different  branches,  it  shall 
be  the  duty  of  the  president  of  the  principal  Bank  to  call  a 
convention  of  delegates  from  the  branches  to  be  composed  of 
the  president  of  each  of  the  said  branches,  and  the  president 
and  directors  of  the  principal  Bank,  whose  duty  it  shall  be  to 
adopt  the  necessary  rules  for  the  intercourse  between  said 
principal  Bank  and  branches.  The  proceedings  of  said  con- 
vention shall  be  entered  of  record  at  the  principal  Bank  by 
ayes  and  noes. 

Sec.  6.  Be  it  enacted,  That  in  all  cases  the  funds  re- 
ceived as  capital  by  the  president  and  directors  ol  the  princi- 
pal Bank,  from  time  to  time,  shall  be  distributed  in  the  afore- 
said proportions,  in  kind  and  value  to  the  respective  branches; 
and  in  like  manner  when  the  principal  Bank  shall  negotiate  any 
bonds  for  internal  improvement  purposes,  the  funds  procured 
shall  be  distributed  in  the  same  proportion  in  kind  and  value 
to  the  branches,  upon  their  placing  the  proper  amount  to  the 


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26 

Bank  of  T  7  '^'  ^'""  *'  "°'«= '°  be  issued  by  the 

Bank  of  Tennessee  for   circulation,  shall  be   siened   by    h! 
presulent  and  countersigned  by  the   cashier   of  Te  prbcipa 
Bank,  and  the  same  may  be  made  payable  a.  such   pTe  o 

'et^rof  t  o  •       "It  r  ^'^^'^^'"^  ^^  'he  boa^      ^ 
rectors  of  the  pnnopal  Bank.     The  notes  of  the  Bank  or 

branches  shall  be  received  in  payment  of  debts  to   he  prL; 
pal  Bank  or  branches;  Proved,  that  if  at  any  time  the  ores- 
-dent  and  directors  of  the  principal  Bank  shall  deem  it  to  tie 
mterest  of  the  institution,  they  may  authorise    l"  p  e  id  ' 

any  or  all  of  the  notes  to  be  ,ssued  for  circulation  by  such 
Bank  or  branches;  Provided  further,  that  in  furnishlL  "he 
branches  w.th  notes  to  be  issued  for  circulation,  the  p  esM  « 
and  d,rectors  of  the  principal  Bank  shall  distribu?e  to'each  an 
amount  of  notes  equal  to  double  the  amount  of  capaWe  aslt 
ed  to  the  branches  respectively.  .      '^  ^ 

Sec.  8.  Be  it  enacted.  That  the  bonds   of  the   State  for 

^^^  01  sa.d  Banks  to  be  applied  as  provided  by 

-.L!Jt Slid  *"•"*"''■"''■«" "  "••  ■«•■ 


27 


protest  at  any  of  said  banks;  and  if  any  such  director  remains 
under  protest  for  the  space  of  thirty  days,  he  shall  forfeit  his 
directorship.  No  director  shall  act  as  attorney  at  law  for  said 
Bank  ar  branches. 

Sec.  11.  Be  it  enacted,  That  the  bonds  of  the  State  to 
be  issued  under  the  provisions  of  the  act  to  which  this  is  a  sup- 
plement, shall  be  engravedunderthe  direction  and  superintend- 
ence af  the  Governor  and  Secretary  of  State;  and  the  comp- 
troller of  the  treasury  is  hereby  required  to  issue  his  warrants 
upon  the  treasury  from  time  to  time,  for  such  an  amount  as 
may  be  necessary  to  defray  the  expences  of  such   engraving. 

Sec.  12.  Be  it  enacted,  That  the  provisions  of  the  law 
passed  at  the  present  session  of  the  General  Assembly,  au- 
thorising the  Governor  to  subscribe  one  half  of  the  stock  in 
works  of  internal  improvement,  shall  be  so  construed  as  to  ap- 
ply to  M'Adamized  roads,  and  Memphis,  Somerville  and  La- 
grange rail  road,  when  part  of  the  stock  has  been  subscribed 
by  individuals,  and  the  Governor  has  subscribed  the  one-third 
of  the  stock  so  taken,  but  which  is  not  sufficient  to  construct 
the  said  roads.  In  such  cases  the  Governor  shall,  agreeably 
to  the  provisions  of  the  act  to  which  this  is  a  supplement, 
subscribe  the  one  half  of  the  capital  stock  of  said  companies 
or  a  sum  equal  to  the  whole  stock  taken  by  individuals  in  said 
roads. 

Sec    13.  Be  it  enacted,  That  the  principal  Bank  of  the 
btate  shall  be  located  at  Nashville. 

JOHN  COCKE, 
Speaker  of  the  House  of  Representatives 
TERRY  H.  CAHAL, 

o       J  T  Speaker  of  the  Senate 

Passed  January  25th  1837.  ^^  ^^nate. 


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COLUMBIA   UNIVERSITY 

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rangement with  the  Librarian  in  charge. 


DATE  BORROWED 


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DATE  BORROWED 


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